ACCOUNTING-201-MOD-2-CASE

ACCOUNTING-201-MOD-2-CASE - ACCOUNTING 301 MODULE 2 CASE...

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ACCOUNTING 301 MODULE 2 CASE ASSIGNMENT DR. WENDY ACHILLIES General Accepted Accounting Principles are accounting rules used to prepare and reports for a variety of businesses, including publicly-traded and privately-held companies to name a few. Basically they provide the framework to insure businesses in the United States are in compliance with set standards, rules and regulations. Though the United States do not set direct accounting standards because they believe the private sector is more knowledgeable. United States GAAP is not written in law, but the U.S. Securities Exchange Commission requires that it be followed. Currently, the Financial Accounting Standards Board (FASB) is the highest authority in establishing GAAP is determined by the Government Accounting Standards Board (GASB), which operates under a set of assumptions, principles and constraints different from the private sector. To achieve basic objectives and implement fundamental qualities GAAP has adopted four basic assumptions, principles and constraints. The importance is to ensure that businesses are not misleading potential investors, creditors and others who may have interest in a company by providing false financial statements of the company’s potential growth, resources and possibly claims to these resources. Historical cost approaches to accounting uses assets values based on the actual amount on
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ACCOUNTING-201-MOD-2-CASE - ACCOUNTING 301 MODULE 2 CASE...

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